BIG 4 EXIT OPPORTUNITIES FOR TAX
Summary
TLDRIn this video, Gabrielle, a tax manager at a Big Four accounting firm, discusses exit opportunities for tax professionals. She highlights three career milestonesβbecoming a senior associate after three years, a manager after five, and a senior manager at eight years or moreβeach offering unique opportunities to transition to roles like financial analyst, tax analyst, or even starting one's own firm. Gabrielle emphasizes the value of the CPA designation and the potential to reach high-level positions like VP of Finance or CFO, suggesting that broad financial knowledge and business acumen are key.
Takeaways
- π Gabrielle is a tax manager at one of the Big Four accounting firms and discusses exit opportunities for tax professionals.
- π The first critical career milestone is at the three-year mark when one becomes a senior associate, often with opportunities to transition to industry roles like financial analyst.
- π° After three years, professionals can expect a 10-25% increase in pay compared to their Big Four salary, but should consider long-term pay progression.
- π The three-year mark is also a good time to leave if tax or accounting isn't a good fit, as skills are still general enough to transition into other fields.
- π The CPA designation is valuable and provides core skills like business acumen and problem-solving, recognized in various industries.
- π The second key milestone is after five years when becoming a manager, which opens up more specialized tax roles and headhunting opportunities.
- πΌ Post-five years, roles like tax analyst, tax manager, or even tax planning specialist at banks become available, often with a significant salary range.
- π For those deeply specialized in tax, venturing into different fields might require a step back in terms of pay or position to gain pace in the new field.
- πΌ The third career milestone is at eight years or more as a senior manager, where roles like director of tax or partner become more attainable.
- π° Senior managers can expect a salary range of $120,000 to $200,000, with the real incentive being the potential to become a partner for higher earnings.
- π Aspiring to be a VP of Finance or CFO, CPAs should focus on broad financial knowledge and business operations, possibly complemented by an MBA.
- π For those interested in more information, Gabrielle suggests reading a blog post by Robert Half, a leading recruiter in accounting and finance.
Q & A
What is the main topic of Gabrielle's video?
-The main topic of Gabrielle's video is discussing exit opportunities for tax professionals in the Big Four accounting firms.
What is the significance of the three-year mark in a tax professional's career at a Big Four firm?
-The three-year mark is significant because it's when a professional becomes a senior associate, has completed the CPA exam, and has enough work experience to be designated as a CPA.
Why is the three-year mark a common time for professionals to leave the Big Four firms?
-The three-year mark is a common time to leave because professionals have gained enough experience and there are many opportunities available with greater flexibility and higher pay.
What is a typical job role one might pursue after transitioning from public practice to industry?
-A typical job role after transitioning from public practice to industry is a financial analyst position in an accounting or finance-related department within a company.
How much of a pay increase can one expect after the three-year mark when transitioning to industry?
-One can expect a pay increase of 10 to 25 percent when transitioning to industry after the three-year mark.
What is the second key milestone in a tax professional's career according to Gabrielle?
-The second key milestone is after the five-year mark when one becomes a manager, gaining more specialized skills in tax and becoming highly sought after.
What are some job opportunities available for a tax professional who has reached the manager level in the Big Four?
-Job opportunities at the manager level include tax analyst, tax manager, or even tax planning specialist positions in industry, as well as roles in other public practice firms.
What is the salary range for tax professionals at the manager level in the West Coast of Canada according to Gabrielle?
-The salary range for tax professionals at the manager level in the West Coast of Canada is around 100,000 to 150,000 dollars.
What is the third career milestone Gabrielle discusses for tax professionals?
-The third career milestone is after eight years or more, when one becomes a senior manager or director of tax, with the potential to look towards partner roles.
What is the potential salary range for a senior manager or director of tax?
-The potential salary range for a senior manager or director of tax is from around 120,000 to 200,000 dollars.
What is the incentive for a senior manager or director of tax to stay in their role according to the video?
-The incentive for a senior manager or director of tax to stay in their role is the potential to become a partner, which can significantly increase their salary and status.
What additional qualification can boost a CPA's chances of becoming a C-suite member?
-An MBA, in addition to a CPA, can make a professional invaluable and boost their skill sets to become a C-suite member.
Outlines
π Career Milestone: Transition to Senior Associate
Gabrielle, a tax manager at a Big Four accounting firm, discusses the first critical career milestone for tax professionals, which occurs after three years of service. At this point, individuals typically transition from an associate to a senior associate role. They have completed the CPA exam and gained enough experience to be designated as a CPA. Gabrielle notes that this is a common time for professionals to leave the firm due to increased opportunities and flexibility in career paths. The most common transition is to a financial analyst position within a company's finance or accounting department. The incentive for this move is often a significant pay raise, ranging from 10 to 25 percent more than their current Big Four salary. However, she also mentions that while the initial pay in industry may be higher, the pay range at Big Four firms increases more rapidly as one progresses.
π Post-Five Year Opportunities and Managerial Roles
The second part of the script addresses the opportunities available after five years of experience, when one becomes a manager. At this stage, professionals have specialized tax skills, making them highly sought after. They may receive headhunting offers from recruiters on LinkedIn or consider roles in industry such as tax analysts, tax managers, or even tax planning specialists in banks. The pay range for these positions is typically between $100,000 to $150,000, depending on the location and market. Gabrielle advises that while it's more challenging to change fields at this point, it's still possible to venture into areas like strategy consulting or financial planning, albeit potentially with a pay cut or a need to start at a lower level. Entrepreneurial individuals might also consider starting their own tax preparation or planning firm. The script also touches on the possibility of becoming a director of tax or pursuing a partner role at a Big Four firm, with salaries ranging from $120,000 to $200,000.
π Senior Manager and Partner Aspirations
In the final paragraph, Gabrielle discusses the career trajectory for those who have been with a Big Four firm for eight years or more, typically as a senior manager. At this senior level, it becomes increasingly difficult to transition out of tax into other fields. The focus shifts towards becoming a partner within the firm or transferring to a smaller firm for a higher chance of partnership. Salaries for senior managers or directors of tax can range from $120,000 to $200,000, with the potential to significantly increase as a partner. Gabrielle also mentions the possibility of aspiring to become a VP of Finance or CFO, emphasizing the importance of broad financial knowledge and business operations experience. She suggests that an MBA, in addition to a CPA, can greatly enhance one's qualifications for such executive roles. The video concludes with an invitation for viewers to share their thoughts on exit opportunities and to engage with the content by liking and subscribing.
Mindmap
Keywords
π‘Big Four
π‘Exit Opportunities
π‘Career Milestone
π‘Senior Associate
π‘CPA (Certified Public Accountant)
π‘Financial Analyst
π‘Pay Range
π‘Tax Specialist
π‘Entrepreneur
π‘Partner
π‘C-Suite
Highlights
Gabrielle, a tax manager at a Big Four accounting firm, discusses exit opportunities for tax professionals.
The first career milestone is at the three-year mark when becoming a senior associate, which is a common time for professionals to leave for more opportunities.
After the three-year mark, professionals typically transition to financial analyst roles in industry with a significant pay increase.
The CPA designation is valuable and provides core skills like business acumen and problem-solving.
The second key milestone is after five years when becoming a manager, which increases specialization in tax and job market demand.
Managers may be headhunted for higher pay or early promotion, and industry roles like tax analysts or managers become available.
The pay range for tax managers in industry can be between $100,000 to $150,000, depending on the location and market.
It's more challenging to switch fields after becoming a tax specialist, but not impossible, with potential roles in strategy or financial planning.
Entrepreneurial individuals may start their own tax preparation or planning firms.
The third career milestone is at eight years or more as a senior manager, where venturing outside of tax becomes increasingly difficult.
Senior managers may aim for director of tax roles or partner tracks within Big Four firms.
Salaries for senior managers or directors of tax can range from $120,000 to $200,000.
The incentive for senior managers often lies in becoming a partner, with potential earnings ranging from $250,000 to $1,000,000.
For those aspiring to be VP of Finance or CFO, CPA expertise combined with broad financial knowledge and business operations experience is key.
An MBA in addition to a CPA can significantly boost one's skillset for C-suite positions.
Gabrielle suggests that experience in the company and understanding of its operations are crucial for aspiring VPs of Finance or CFOs.
The video concludes with an invitation for viewers to share their thoughts on additional exit opportunities and future career aspirations.
Transcripts
hi everyone welcome back to my channel
my name is gabrielle
and i'm a tax manager at one of the big
four accounting firms
and today i'll be talking about a topic
that a lot of you guys seem
really interested in and that is what
are the big four
exit opportunities for tax if you find
these sort of videos interesting make
sure to hit that like button down below
so that really lets me know that you
enjoy these sort of videos
and also don't forget to subscribe so
that you could be notified for future
videos
today i'm going to be talking about
three critical points in your career
that could really
impact your opportunities in the job
market the first critical milestone in
your career
is the three year mark when you become a
senior
associate so the first two years were
spent as a new associate
and associate and during this time
you're just studying
and getting as much work experience as
possible
and into your third year you've written
the cv which is a common final exam
and you've also been promoted to a
senior associate and you're well on your
way to getting
the enough work experience to be
designated as a cpa
based on my experience for the past
couple years i feel that
the most amount of people leave during
this milestone
and that is because there are so many
more opportunities
out there and at the same time there is
a lot of flexibility in terms of what
sort of rules you might want to pursue
the most typical jobs that you might
pursue from making that transition from
public practice before
to industry is usually a financial
analyst position
in an accounting or finance related
department
within a company the biggest incentive i
would say from making that transition
aside from the type of work you might
want to pursue is definitely the pay
at this point you can expect to get 10
to 25
bigger pay than what you're currently
getting at the big four but keep in mind
that as you move up at a big four your
pay range increases might actually be
greater than if
you're in industry in an industry you
might have
started with a bigger pay but it might
be snagnet for
a couple years i would also say that
this milestone is the best time for you
to leave
if you find that tax audit or accounting
is just not for you and that is because
at this point you have just became an
accounting generalist you know a bit of
tax you know a bit of audit from
studying towards your cpa and those
skills are not that greatly
differentiated
at this point it is also the best time
because you're
malleable to whatever rule that you
might want to pursue
whether that is strategy consulting
financial planning
and even i.t whatever path you decide to
go into
remember that scp designation is very
valuable
because it provides you with the core
skills such as business acumen
and problem solving that is highly
recognized wherever you go
and that is well respected the second
key milestone
is after the five year mark when you
become manager
as a manager you have more specialized
skills in tax
which makes you highly sought after in
the tax world
and at this point you will have a lot of
recruiters head hunting you on linkedin
asking you to move to other public
practice firms for either
higher pay or early promotion there are
also jobs available in industry
such as tax analysts or even tax
managers
which are comparable to controllers you
may even go for the odd
tax planning specialist position at
banks and even for treasury positions
these industries will tend to be much
larger companies because
small companies obviously won't be able
to afford an
in-house tax expert and i would say that
pay ranges from around 100 000
to 150 000 really depends on where you
live
and what sort of market you're in but i
would say in the market that i'm
more familiar with which is the west
coast of canada that's usually the range
of salary
while there are enough demand for tax
experts
out there at this point in your career i
would say it's a little bit more
difficult to venture out
of tax but that being said it is not
impossible
and you could always venture out into
different fields like i mentioned such
as strategy
or consulting or even financial planning
but at this point because you're so
deeply entrenched in
becoming a tax specialist that in order
to pursue those other roles you might
have to level down a little bit just so
you could pick up pace
and or even get a decrease in salary
and if you have more of an entrepreneur
spirit within you
another exit plan is to start your own
firm
that you know prepares tax returns or
even does
tax planning for small to medium-sized
companies
or even for individuals this is also a
plus given that you know if you're
pursuing
an audit path it might be a little bit
more difficult to set up your own
firm just because of more regulations
and restrictions
the third milestone in your career is
eight years or more
as a senior manager i'm sure that you
picked up on this already but as you
become more and more
senior in the tax practice it becomes
increasingly more difficult to venture
outside of tax and do something else as
a senior manager
you could look towards roles such as
director of tax at a big company
but at this point to be honest you
probably stuck around so that you could
look towards the partner route at a big
four as a senior manager
or even a director of tax you could
expect salary to range from
around one hundred twenty thousand
dollars to two hundred thousand dollars
and at this point um there isn't much
incentive to
look for jobs elsewhere just because
salary could be pretty similar across
the job market
for a senior manager the real incentive
lies in becoming a partner whether that
is at a big four firm
or even transferring to a smaller firm
for higher chances of becoming a partner
because the pay could jump dramatically
ranging from 250 000 and then working
your way up all the way to even one
million dollars
i'm just going to add one more bit here
and that is for those who are interested
in becoming a vp of finance or cfo
one day in the future and as a cpa
this could be totally within your realm
of
expertise but i would have to say that
it doesn't matter whether you specialize
in audit or if you specialize in tax
what really matters is your experience
in the broad
financial knowledge that you have as
well as
the business itself and the operations
so this probably would entail for you to
you know start at a company relatively
early
and to make your way up just so you have
that
experience working in the company and
really knowing
the details of how the company operates
also adding an mba on top of your cpa
will also make you invaluable and really
boost your skill sets to becoming a c
suite member clearly i'm not an expert
when it comes to vpr finance or
a cfo but it's just based on what i've
heard and based on what i've researched
and if you want to know more i will link
a blog post below
and it's written by robert half which is
the biggest recruiter when it comes to
accounting and finance so
take a read if you're interested that's
a wrap for my video on big
four exit opportunities for tax if you
guys found it useful it would mean a lot
to me if you guys could hit that like
button down below
as well as hit the subscribe button so
you can be informed of future videos
let me know if there are any other extra
opportunities that you could come up
with or
even post whatever job that you would
like to pursue after public practice
i really appreciate you sticking around
this long and thank you so much for
watching
i'll talk to you guys next time bye
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